Demand-side Platforms Automate Ecommerce Ads

When the competition for popular keywords on Google Ads and Meta Ads reaches a feverish pitch, marketers can turn to other platforms to find pay-per-performance value.

Advertising is a crucial component of ecommerce marketing. Frequently the ads are pay-per-click, pay-per-impression banners, and similar. This is where demand-side platforms come in.

Demand-side Platforms

A DSP enables marketers to purchase advertising space across various digital media, including websites, mobile applications, streaming video, digital out-of-home billboards and screens, and streaming audio.

DSPs automate the process of buying and optimizing online, mobile, and streaming advertising, making it possible for ecommerce advertisers to reach specific audiences with relevant ads. This includes detailed audience targeting that is often based on both demographic and psychographic audience data. All of this complies with the European Union’s General Data Protection Regulation and the California Consumer Privacy Act of 2018.

While some might argue that Google Ads and Meta Ads are more appropriately described as ad networks and refrain from calling them DSPs, both platforms meet the DSP definition and provide an excellent analogy for how all DSPs function. In this way, the marketing teams at retailers, ecommerce shops, and direct-to-consumer brands are already very familiar with how to use and work with a DSP.

Why Use DSPs?

DSPs work by connecting to multiple ad exchanges and real-time bidding systems, allowing advertisers to bid on ad space in real-time — similar to using Google Ads or Meta Ads.

DSPs can help some online brands reach potential customers at the right time and place, producing the targeting and conversion opportunities many ecommerce companies are accustomed to with Google and Meta.

If an ecommerce marketer is looking to get started with DSPs, there are a number of options, including:

Amazon DSP is one of several examples of effective advertising platforms for ecommerce businesses.

Adding DSPs

DSPs are potentially a powerful tool for ecommerce businesses.

If a business is already enjoying excellent returns on Google Ads and Meta Ads, it might not make sense to look further. But when competition for audiences or keyword phrases is high, an advertiser could reach a similar audience through a DSP.

13 Marketing Podcasts for Online Merchants

Digital marketing podcasts are opportunities to learn from experts and obtain strategies to grow a brand.

Here is a list of free digital marketing podcasts. Get insights from marketing veterans on tactics, industry news, and step-by-step help on the best ways to market your business. And remember our own weekly podcast, “Ecommerce Conversations,” hosted by entrepreneur Eric Bandholz.

Marketing School

Marketing School

“Marketing School,” by Neil Patel and Eric Siu, provides 10 minutes of actionable marketing advice daily, covering search engine optimization, content marketing, social media, email marketing, conversion optimization, and general online marketing tactics. Recent episodes include “How to Use Meme Marketing to Grow Faster” and “Lessons Learned From A Private YouTube Creator’s Event.”

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Search Engine Journal Show

Search Engine Journal Show

“Search Engine Jornal Show,” hosted by Loren Baker, is the official podcast of Search Engine Journal. Joined by industry experts, the show explores all aspects of digital marketing, including SEO, pay-per-click advertising, social media, and content marketing. Recent episodes include “What’s Great and What’s Noise? Content Crafting Best Practices from Our Experts” and “Social Ads: Connecting Performance & Metrics To Outcomes.”

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Online Marketing Made Easy

Online Marketing Made Easy

“Online Marketing Made Easy,” with Amy Porterfield, breaks down big ideas and strategies into actionable processes to get results with less stress. For aspiring entrepreneurs or established online businesses, the show explores growth strategies for online brands, including list building, social media marketing, content marketing, digital courses, and more. Recent episodes include “Tax Strategies That Sound Illegal (But Aren’t) With Candy Valentino” and “Steal My Mini-Promo Strategy For A Quick Revenue Boost.”

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Marketing Over Coffee

Marketing Over Coffee

“Marketing Over Coffee” covers classic and new marketing strategies to drive business. Co-hosts John Wall and Christopher Penn record the show weekly and publish it on Thursday mornings. Each episode is about 20 minutes and contains marketing tips and tricks. Recent episodes include “How to Generate Images and Transcripts with AI Tools” and “Talking Email: Live from Brazil with Justine Jordan.”

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The Agents of Change

The Agents of Change

“Agent of Change” serves small business owners, marketers, and entrepreneurs to help them obtain customers through search, social, and mobile marketing. Recent episodes include “Wrapping Your Head Around The New Google Analytics” and “Should AI Write Your Content?”

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Marketing Against the Grain

Marketing Against the Grain

“Marketing Against The Grain” is hosted by Kipp Bodnar, HubSpot’s CMO, and Kieran Flanagan, Zapier’s CMO. The show explores marketing trends, growth tactics, and innovation — focusing on new methods and an unfiltered examination of successful fresh ideas. Recent episodes include “Neil Patel Makes The Case Against ChatGPT” and “How I Grew To 600,000 Twitter Followers Using Reddit, with Trung Phan.”

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Social Pros Podcast

Social Pros Podcast

“Social Pros Podcast,” one of the longest-running marketing podcasts, presents inside stories and behind-the-scenes tips on how teams at companies like Google, Reddit, Glossier, Zillow, Lyft, and Oracle operate and measure their social media programs. Recent episodes include “Why Every Brand Should Follow in Lululemon’s Social Footsteps” and “How Quality Content Consistently Pays Off.”

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Duct Tape Marketing

Duct Tape Marketing

“Duct Tape Marketing” is a daily show from John Jantsch, a leading do-it-yourself marketing expert. He interviews authors, practitioners, and thought leaders, sharing business marketing tips, tactics, and resources. Recent episodes include “Navigating Uncertainty: The Art of Imperfection in Strategy” and “The Fastest And Least Expensive Way To Double Your Sales.”

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Social Media Marketing Podcast

Social Media Marketing

“Social Media Marketing Podcast” is a weekly 45-minute show hosted by Social Media Marketing founder Michael Stelzner. Through interviews with marketing experts across multiple industries and specialties, Stelzner addresses new strategies, tactics, and actionable tips to improve social media marketing. Recent episodes include “Email Marketing Strategy: Cultivating Prospects With Content” and “Creator Content That Converts With Facebook Ads.”

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The DigitalMarketer Podcast

The DigitalMarketer Podcast

“The DigitalMarketer Podcast” is a weekly show produced by DigitalMarketer and hosted by Mark de Grasse. Listen to interviews with key players in the digital marketing industry, with real-world insights and examples of the best marketing strategies working right now. Recent episodes include “Creating Conversions from Direct Marketing, Using Digital, With Robert Lee” and “SEO Content Creation Using AI with Dennis Yu.”

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Perpetual Traffic

Perpetual Traffic

“Perpetual Traffic,” hosted by Ralph Burnes and Kasim Aslam, explores digital marketing and online advertising strategies to acquire leads and sales for your business through paid traffic. Learn about advertising on Facebook, YouTube, Google, LinkedIn, and more. Recent episodes include “Life-Transforming AI Tools You’re Not Using…But Should” and “The ‘Should You Buy This Product or Not’ Webinar Framework with Jason Fladlien.”

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The Science of Social Media

The Science of Social Media

“The Science of Social Media” is a weekly podcast from Buffer. It explores marketing strategies and tactics to help grow a business and build a brand through social media. Recent episodes include “What is the Ideal TikTok Length?” and “It’s Here… AI for Social Media Scheduling.”

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The CMO Podcast

The CMO Podcast

“The CMO Podcast” is hosted by Jim Stengel, small business entrepreneur and former CMO of Procter & Gamble. Get an inside look at the thought process and motivation of the CMO, the decision-maker in charge of the entire consumer experience. Recent episodes include “Paul Rivera (The SpringHill Company); Brand First: Keep the Main Thing, the Main Thing” and “Samir Singh (Unilever, Personal Care); The Power of Laddering Down.”

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5 Reasons Retail Media Ads Fail

Retail media is one of ecommerce marketing’s hottest trends. Example platforms include Amazon Ads, Walmart Connect, Target Roundel, Home Depot Retail Media+, and many more. Some in the industry see retail media as a sure vehicle for sales and profits. But not every advertiser experiences success.

Most of the failures in my experience result from one of five missteps: selecting the wrong audience, unclear messaging, poor optimization, insufficient investment, and unrealistic expectations.

Let’s consider each in turn.

Target’s Roundel platform is one of many retail media advertising options.

Wrong Audience

Focusing on the right audience is crucial for any successful advertising campaign, and retail media is no exception. The audience is the first thing to examine for failing campaigns.

Revisit your customer personas and ensure that the retail media platforms you’ve selected cater to that demographic.

Consider narrowing your campaign to a niche. Testing other retail media platforms or adjusting customer targets can make sense. Merchants often think their products appeal to everyone when most shoppers don’t care. An example is sustainable products. Only a small percentage of consumers consider sustainability when evaluating purchases, but those that do are passionate.

Bad Messaging

Shoppers need to know what they are buying and why. If your retail media ads aren’t resonating with target customers, the issue could be bad messaging.

To improve, focus on delivering a clear, concise, and persuasive message highlighting your product’s unique selling proposition. Emphasize function over form. It is far more important to convey a product’s value than worry about having nuanced or sophisticated branding.

Poor Optimization

Retail media campaigns often take time to optimize — gather data and insights —  to achieve their full potential.

Retail media platforms use optimization algorithms. They also show ads to the same shoppers repeatedly. Modern marketers tend to forget the repetition required to reach a would-be buyer. A common default for retail media platforms is to show an ad to a shopper as many as seven times in a single day or even a single session. It takes time, in other words, for these platforms to deliver.

But don’t sit passively. Regularly monitor campaigns’ performance metrics, including click and conversion rates, cost per acquisition, and return on ad spend. Leverage those insights for data-driven adjustments, focusing on potential improvement areas. Be patient and give Amazon and other platforms enough time to work on your behalf.

Inadequate Investment

Underinvestment in retail media campaigns (especially for testing) can impair performance. Insufficient spend can restrict a campaign’s reach, visibility, and effectiveness.

Reevaluate budget allocations, assessing platform fees, ad placement costs, and potential return on investment. Consider investing in advanced targeting tools, analytics services, and creative resources to enhance campaign effectiveness. Allocating adequate funds to retail media campaigns can significantly improve results.

Unrealistic Expectations

Unrealistic expectations for retail media campaigns lead to disappointment. Despite the hype, retail media is no panacea — and neither is any other marketing vehicle.

Set achievable goals based on your budget, historical results, and industry benchmarks. If a campaign fails its targets, set more realistic expectations.

Success in retail media requires a combination of strategic planning, patience, and ongoing optimization. Realistic goals and ongoing campaign refinements are essential for long-term performance.

Retail Media Should be Data Thrifty

“Retail media” refers to advertising on retailers’ websites, apps, and physical stores. The ad units include display ads, videos, sponsored product listings, email, and more.

eMarketer estimated 2022 revenue from retail media in the U.S. at $40.8 billion, representing 16.4% of all digital ad spending. As retail media advertising grows, so will the need to carefully manage consumer data.

It starts with data thriftiness.

Data Thrifty

Data thriftiness is being mindful of the types of data collected, how it’s gathered and used, and how long it’s stored. It balances privacy concerns and marketing goals and informs shoppers what is being collected and how they can opt-out.

It’s the opposite of greedily collecting all possible info.

In many ways, retailers and retail marketplaces are becoming ad platforms.

Retail media allows brands to reach shoppers very near the point of purchase. Enterprise retailers and marketplaces such as Amazon, Walmart, Macy’s, Lowe’s, and Kroger use the data collected from their ecommerce sites and point-of-sale systems to offer advertisers laser-focused targeting based on shopper behavior, buying history, and purchase intent.

“Retail media is following in the footsteps of search and social as digital advertising’s third big wave and has already established itself as a force. Built on a foundation of valuable first-party purchase data, contextually relevant ad experiences, and closed-loop reporting, retail media is seeing advertiser budgets quickly migrating in its direction,” write Andrew Lipsman, principal analyst at Insider Intelligence, in a September 2022 eMarketer article.

Lipsman has argued that retail media in the U.S. will be larger than search or social media advertising and, by 2024, could represent one in every five digital ad dollars.

Therein lies the temptation.

Brand advertisers that demanded more return on investment, tracking, and data from Google and Meta’s ad platforms could do the same with retail media.

Benefits of Data Thrift

In a post-GDPR (E.U.), post-CCPA (California) world, thoughtful and thrifty data collection is imperative. It also has many benefits.

Regulatory compliance. Collecting only the necessary shopper info to support ad placements helps retail media comply with privacy regulations.

Data protection. Retailers reduce the risk of data breaches by collecting only the essentials, lowering the chance of legal and reputational harm.

Shopper experience. A data thriftiness policy could lead to shorter forms and checkout processes.

Data management. When it gathers relatively less information, a retail media network could operate more efficiently, with reduced storage and processing requirements. Fewer bits and bytes could boost network performance and lower costs.

Better ad performance. Focusing on the most impactful, vital customer data could improve ad performance.

Frugality or Gluttony?

There is no one-size-fits-all for data frugality. Each retailer should work out its own approach. There are, however, principles to guide data thriftiness:

• Tell shoppers about the data collected, its use, and how they can opt-out.
• Collect only the essential info.
• Don’t keep information forever.

Retail media could become a top form of digital advertising in the U.S. and worldwide. As it grows, retailers, marketplaces, and advertisers will decide how data is collected, stored, and used. Choosing frugality over gluttony will earn the trust of shoppers — and legislators.

Unsure of Brand Ads? Just Do It

Ecommerce marketers often focus on direct-response advertising. It’s easy to measure, after all, and can result in immediate sales. This seemingly pragmatic approach to ads ignores the importance of brand recognition, which drives performance across all marketing channels.

Marketers reared in the pay-per-click era often have only a textbook understanding of brand advertising. They define it in technical terms without understanding its benefits.

These marketers might say, “Brand advertising is centered on enhancing awareness, fostering customer loyalty, and forming lasting connections with clients.”

Hence when marketing folks are trying to reach sales goals this week or month, brand advertising may seem theoretical, a wasted effort.

Brand and Search Traffic

To be clear, marketing teams should start with direct response advertising. But don’t stop there. Brand advertising is the next step to improve all marketing efforts.

Take search traffic, for example.

During a conversation, the top marketer at a business doing more than $10 million in annual sales complained to me that consumers on Google searched for his competitor’s name more than his own.

This otherwise savvy professional should have realized that this was a battle of brands. His competitor had more brand recognition. Many potential customers were searching for the brand they already knew rather than looking for the product category.

Google Trends confirms the $10 million revenue business (in red) has fewer searches than its competitor (in blue).

The difference was brand advertising. Placing branding ads on YouTube, streaming video services, and even traditional channels almost certainly gave this company its competitive advantage in search traffic.

Brand and Trust

Shopper trust is complex. A strong product, on-time delivery, and good value are all trust builders. And so is brand advertising.

In his 2021 Dreamforce keynote, Salesforce CEO Marc Benioff presented the “trusted enterprise” concept.

To earn trust, Benioff argued, businesses must prioritize stakeholders, operate transparently, and be accountable. He emphasized that building a trusted enterprise is an ongoing effort with a customer-focused strategy — prioritizing data security and privacy and investing in employee welfare. It’s not a quick process.

But trust doesn’t equate to prominence. A business can communicate that trust via branding campaigns. Shoppers purchase brands they recognize and trust. This is true for first-time and repeat buyers.

Salesforce’s branding campaigns, such as this example from 2019, communicate trust.

Nike has long relied on brand campaigns with its ubiquitous swoosh and “Just do it” tagline. Both evoke memories and emotions for many consumers.

Nike’s ubiquitous swoosh and “Just do it” tagline evoke memories and emotions for many consumers.

Better Performance

Brand advertising makes all campaigns work better.

“Businesses may dismiss brand advertising for its lack of immediate ROI,” wrote Diane Callihan, president of Callihan Content Creation. “But building brand relationships over time may drive sales you’re unaware of. For example, it can be misleading to attribute all the credit for a purchase to a search ad conversion. While the search ad may have closed the deal, it may not have been the primary marketing activity that led the customer to purchase. Consistent and steady brand advertising very often lays the groundwork for successful search ads and other conversions.”

Callihan’s point is consistent with Edelman’s 2019 “Trust Barometer Special Report: In Brands We Trust?” (PDF). It found that brand recognition and trust lead to a 28% improvement in advertising receptivity.

And that includes direct-response ads. Imagine two direct-response campaigns for near-identical products and prices; the advertiser with the most recognizable brand nearly always receives a better response.

Bottom line, brand ads improve performance across all marketing channels.

A Gathering Storm for Digital Ad Tracking?

Digital advertising is changing, but not in the blink of an eye. It’s more like a gathering storm in the distance.

For a few years, concerns about privacy and abusive tracking in the digital advertising industry have led consumer groups, legislative bodies, and even technology companies to limit how platforms track individuals across websites and devices.

These various initiatives come from the Electronic Frontier Foundation, the European Union, and even Apple and Google. They have names like the General Data Protection Regulation, the California Consumer Privacy Act, and Apple’s App Tracking Transparency framework.

Here’s the key. They already impact digital advertising performance. And if Google abandons tracking cookies — the company has postponed the demise multiple times — the damage to advertising’s return on investment could be significant.

Apple’s rollout of its App Tracking Transparency initiative began in May 2021 with iOS 14.5.

Preparation

Many ecommerce businesses — brands, retailers, B2B — rely on digital ad targeting and predictable customer acquisition costs on the Meta platform.

If the current targeting methods become obsolete, advertisers must find other ways to drive profitable sales. One option is building first-party databases to create audiences without necessarily tracking those users all over the internet.

Today, enterprise business and media agencies typically use demand-side platforms to purchase digital ads. Google Ads and Meta Ads are examples of DSPs, although many others permit advertisers to purchase inventory on anything from a website to a streaming television show.

DSP advertisers can set frequency targets so that an individual will see an ad precisely 10 times, for example, in 48 hours. This cap could include every cross-channel placement: website, email newsletter, social media platform, streaming service, and search engine.

Advertisers can control how often messages are shown, their sequence, and predict whether a shopper is likely to buy. It’s seemingly the golden age of digital ad targeting.

But the dark ages are coming.

Walled Gardens

Increasingly, DSPs are losing cross-platform tracking abilities. Google, Meta, and Disney+ are becoming so-called “walled gardens.” When it runs a campaign on Disney’s streaming service, a company can track the performance only of that ad and not on other platforms.

Hence a consumer who clicks an Instagram ad and buys something from an ecommerce website may continue to be bombarded with messages on other channels.

First-party Data

A solution for brands and agencies is building first-party customer data.

A business could start now and purchase a large customer database as the “trunk” in its new “tree.” Buy MasterCard’s consumer database, which is still available, and the business will have a purchase history too. Finally, add in the company’s sales data, and audiences can be developed before you know it.

Ad professionals call this trend “the first-party data arms race” since many believe assembling data now, before complete or partial signal loss, is like preparing for a storm.

So how is this done?

Advertising agencies are creating massive data repositories with all the information they can gather on American consumers. If the world becomes cookieless, the agencies can still develop audiences, manage frequency, and create profitable campaigns.

But enterprise ecommerce merchants — brands, retailers, B2B — should also get into the data collection habit. This could mean offering incentives for shoppers to create accounts. It might include new forms of content marketing aimed at capturing customer info, and it may involve expanding into other advertising mediums solely to collect data.

Each of these strategies has merit. But the key is to start now, before all tracking changes.